Capstone Holding Corp. — Director's Dealing 2008

Oct 10, 2008

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: ORTHOLOGIC CORP (CAPS)
CIK: 0000887151
Period of Report: 2008-10-07

Reporting Person: BVF PARTNERS L P/IL (10% Owner, Indirect Beneficial Owner)
Reporting Person: BIOTECHNOLOGY VALUE FUND L P (10% Owner, Direct Beneficial Owner)
Reporting Person: BIOTECHNOLOGY VALUE FUND II LP (10% Owner, Direct Beneficial Owner)
Reporting Person: BVF INVESTMENTS LLC (10% Owner, Direct Beneficial Owner)
Reporting Person: BVF INC/IL (10% Owner, Indirect Beneficial Owner)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	920888	Direct
Common Stock	623400	Direct
Common Stock	2406000	Direct
Common Stock	3950288	Indirect
Common Stock	3950288	Indirect

Footnotes

F1: The shares of Common Stock are directly beneficially owned by Biotechnology Value Fund, L.P. ("BVF"), a Delaware limited
partnership.

F2: The shares of Common Stock are directly beneficially owned by Biotechnology Value Fund, II, L.P. ("BVF2"), a Delaware limited
partnership.

F3: The shares of Common Stock are directly beneficially owned by BVF Investments, LLC ("BVLLC"), a Delaware limited liability
company.

F4: The shares of Common Stock are indirectly beneficially owned by BVF Partners, L.P., a Delaware limited partnership
("Partners"). Partners is the general partner of BVF and BVF2 and is the manager of BVLLC.

F5: The shares of Common Stock are indirectly beneficially owned by BVF Inc., a Delaware corporation ("BVF Inc.") , which is the
general partner of Partners and is also an investment advisor to Partners.

F6: Pursuant to the operating agreement of BVLLC, Partners is authorized, among other things to invest funds of Ziff Asset
Management, L.P., the majority member of BVLLC, in the shares of Common Stock described herein and to vote and exercise
dispositive power over those securities. Mark N. Lampert is the sole shareholder and sole director of BVF Inc., and is an
officer of BVF Inc. The joint filing on Form 3 shall not be deemed an admission that Mark N. Lampert is, for purposes of
Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise, the beneficial owner of any securities covered
by this joint filing. Mr. Lampert disclaims beneficial ownership of all securities reported in this joint filing on Form 3,
except to the extent that he has a pecuniary interest therein.